As government debt increases,
a. Congress will reduce spending by an equal proportion.
b. the government must spend more revenue on interest payments.
c. a trade-off with government deficits is inevitable.
d. tax rates must rise to cover the deficit.
b
You might also like to view...
A "Jumbo" CD is one in excess of
A) $1,000. B) $10,000. C) $50,000. D) $100,000.
Assume that there are no excess reserves, no savings accounts, and no currency held by the public. If the demand deposit expansion multiplier is 4, the required reserve ratio must be
A) also 4. B) .2. C) .25. D) .5.
For an addictive drug such as heroin, if the price of heroin increases, then
A) the quantity demanded never changes. B) the quantity demanded will decrease by a relatively large amount. C) the quantity demanded will actually increase. D) the quantity demanded will decrease by a relatively small amount.
What situation arises when government positions are filled with people who have close ties to the group they are supposed to regulate?
A. Bureaucratic capture B. Collective action C. Governmental lobbying D. Rent-seeking